Downey warns beef producers face €175m losses unless prices rise
Mr Downey has challenged Agriculture Minister Simon Coveney to take action on the critical issues for the beef sector. He urged the minister to reject the factory cuts and specification changes and to address labelling and live export issues curtailing competition and the movement of stock to our key markets, including Northern Ireland and the UK.
“The sector needs stability and confidence to be restored without any further delay,” said Mr Downey. “At the moment, winter finishers and particularly bull beef finishers are in the eye of the storm. Some bull beef finishers are at their wits end, unable to get cattle killed.
“When they do sell them, they are facing price cuts of 50c/kg plus, ranging from €200 to €300 per head. These farmers are facing very real and very substantial financial losses this spring.”
Mr Downey said steer and heifer prices are down €70 to €80 /head versus this time last year. Bull beef and cow prices are down €180 to €200/head. He urged the minister to get Teagasc, Bord Bia, ICBF, the factories and the IFA around the table to revisit the Food Harvest beef activation plans.
IFA national livestock chairman, Henry Burns, said IFA has worked hard to secure a new ferry route for live cattle to the UK. He urged Mr Coveney to remove the artificial blockages preventing the expansion of the live trade to the UK, and to address labelling difficulties.
Henry Burns said: “IFA is calling on the Minister and Bord Bia to go to the UK and meet with the supermarket bosses and their government and agency counterparts to resolve these difficulties.
“Doing nothing on this is no longer acceptable. The large price gap between Irish and UK cattle prices must be closed.”
The Ibec meat factory body Meat Industry Ireland (MII) said that the Irish beef sector is in a strong position and can develop further to deliver in full on FH2020 growth targets.
“Irish beef exports have increased by 35% since 2010, reaching a record level of €2.1bn last year,” said MII chairman Cormac Healy.
“Irish beef farmers have benefited from a strong industry performance over that last few years. Irish cattle prices have increased by 40% over the past four years.
“Cumulatively, this has meant an additional €1.5bn pay-out to Irish beef producers.
“Despite current market challenges, due to reduced demand in the market, Irish prices still remain at the upper end of the EU price league.”
This MII chairman said beef consumption in the EU market is depressed due to weaker consumer spending power, limited retail promotional activityin the beef category due to its higher price relative to pork and poultry, and milder weather through January and February.
He also cited a significantly weaker trade for manufacturing beef, Increased volumes of pork on the market due to the ongoing Russian ban on all EU pigmeat exports.
“This weaker market demand at present has seen the UK cattle price falling continuously since last October through to today,” said Mr Healy. “Since last October, UK prices are back by approx. 33p/kg (40c/kg).”
“Significant volumes of current weekly production remain in stock due to lack of sales opportunities. These are market-driven issues and it is misleading of farm organisations or other commentators to suggest otherwise.”
At yesterday’s oireachtas meeting on the beef sector, Sinn Féin TD Michael Colreavy suggested that the Competition Authority examine the claims of anti-competitive practices in the beef sector, or that a monopolies commission enquiry be launched.
